Financial Sector Competition and Knowledge Economy: Evidence from SSA and MENA Countries

Journal of the Knowledge Economy, 6(4), pp. 717-748 (2015)

37 Pages Posted: 10 Sep 2014 Last revised: 7 Dec 2015

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Date Written: August 8, 2012

Abstract

The goal of this paper is to assess how financial sector competition plays-out in the development of knowledge economy (KE). It contributes at the same time to the macroeconomic literature on measuring financial development and response to the growing field of KE by means of informal sector promotion, micro finance and mobile banking. It suggests a practicable way to disentangle the effects of various financial sectors on different components of KE. The variables identified under the World Bank’s four knowledge economy index (KEI) are employed. Three hypotheses based on seven propositions are tested. Results show: (1) the informal financial sector, a previously missing component in the definition of the financial system by the IMF significantly affects KE dimensions; (2) disentangling different components of the existing measurement of the financial system improves dynamics in the KE-finance nexus and; (3) introduction of measures of sector importance provides relevant new insights into how financial sector competition affects KE.

Keywords: Financial development; Knowledge Economy

JEL Classification: G21; O10; O34; P00; P48

Suggested Citation

Asongu, Simplice, Financial Sector Competition and Knowledge Economy: Evidence from SSA and MENA Countries (August 8, 2012). Journal of the Knowledge Economy, 6(4), pp. 717-748 (2015). Available at SSRN: https://ssrn.com/abstract=2493234 or http://dx.doi.org/10.2139/ssrn.2493234

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
14
Abstract Views
288
PlumX Metrics